Asian stock markets lacklustre as failure of S&P 500 to make new high saps confidence

BANGKOK, Thailand (AP) — Subdued trading reigned in world stock markets Wednesday after the S&P 500’s failure to punch through its recent record high for a second day instilled investors with caution.

There was little economic or corporate news, which put Wall Street’s lack of momentum into focus.

Germany’s DAX was off 0.2 per cent at 9,683.91 and France’s CAC-40 dropped 0.3 per cent to 4,401.56. Britain’s FTSE 100 fell 0.4 per cent to 6,803.20.

For two straight days the S&P 500 has approached its record closing high of 1,848.38 set Jan. 15 but faded on both occasions. That has boosted the confidence of “bears,” investors who are betting that markets will enter a correction because they think current valuations aren’t justified.

“The prospect of a pullback seems to be growing,” said Chris Weston, chief market strategist at IG in Melbourne, Australia.

“Given we are coming to the tail end of earnings season, the question is what will be the catalyst for which the bulls will cling to from here?”

Japan’s Nikkei 225 stock average closed down 0.5 per cent at 14,970.97 and Hong Kong’s Hang Seng gained 0.5 per cent to 22,437.44.